Why is the Litecoin Market Share Growing?November 4, 2021
From 2020 to 2021, crypto as a whole has been on a bit of a rollercoaster ride. What has been different, however, is that the dips are becoming less frequent as well as less significant. The latest insights from cryptocurrencies show that we have entered a time where crypto is now more accessible than ever. Beyond the accessibility, there is also the desirability: everyone has seen the success of Bitcoin and everyone wants in on the action.
Given that Litecoin stems from Bitcoin, it makes sense that this crypto is receiving a great deal of attention. Having hit its record high in May this year, Litecoin experienced a dip. It is this dip that makes it the perfect time to get in and prepare for the growth that is coming. Let’s take a look and what has impacted Litecoin and why so many have realised that now is the time to take their share.
So, what is Litecoin?
Everyone has heard of Bitcoin, but there is a possibility that not everyone knows what Litecoin is. We’d like to take the chance to put that right.
Litecoin came into being back in 2011 and is the result of a Bitcoin fork. The man behind this crypto was Charlie Lee. Lee had already shown his tech skills in his former positions working for Google and as an engineer at Coinbase. What Lee envisaged with Litecoin was a crypto that took all of the great parts of Bitcoin, but with transactions that were faster and cheaper.
Given that Litecoin was derived from Bitcoin, it makes sense that there are similarities between the two. For one, there are a limited number of coins that can be mined. Whereas Bitcoin has 21 million, Litecoin has made 86 million available. At present, there are 67 million of these in circulation.
Why opt for Litecoin over Bitcoin?
Litecoin is the 16th most valuable crypto right now with a market cap of $11.4 billion. This means that this crypto has strong liquidity which can be seen by the daily trading volumes of $1.96 billion. The fact that there is high liquidity means that there are great trading conditions with this coin.
Litecoin’s performance puts Bitcoin to shame. It is much faster and cheaper than Bitcoin. With a Bitcoin transaction, you can expect to have to wait 9 minutes for the transaction to be verified. With Litecoin this is reduced to 2.5 minutes. In terms of costs, a Bitcoin transaction costs at least $2 but has known to climb as high as $60. A Litecoin transaction attracts fees as low as $0.022. Both of these factors make Litecoin the perfect crypto for retailers to accept.
The Litecoin surge
Despite Litecoin offering the perfect environment for retail transactions, this is something
has yet to happen. Whereas acceptance of Bitcoin has steadily grown, this is a path that Litecoin has yet to start taking. There are, however, positive signs that this journey will start soon.
What has really seen Litecoin surge is the fact that PayPal began to accept the coin. This put Litecoin on a par with its older brother which was already been used on PayPal. The crypto saw a further boost when Venmo stated that its users could now claim cashback rewards when using Litecoin. Both of these developments have made the future of Litecoin extremely bright.
Now is the time
Litecoin’s market share is growing as those in the know when it comes to crypto can see that the conditions are perfect right now. With a price that has dipped along with other cryptos, the barrier to getting in is low. When this is considered alongside the fact that Litecoin is becoming accepted by the likes of PayPal, it is only a matter of time before its use explodes. When this time comes you will want to be in the position where you stand to benefit.
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